Novek

Headquartered in London and founded in 2018, Novek is a venture-backed company focused on developing Internet of Things (IoT) technology to address supply chain inefficiencies and environmental concerns. The firm specifically targets the elimination of single-use plastics in the fast-moving consumer goods (FMCG) sector.

Novek designs and builds IoT-enabled dispensing machines and accompanying software for micro-retailers, primarily operating in East Africa. These machines are placed in small, owner-operated kiosks and allow consumers to purchase products in micro-quantities that fit their daily budgets, a common preference in low-income areas. The company's initial pilot programs in Kenya focused on dispensing cooking oil and have since expanded to include washing powder, a multi-billion dollar global market. This model allows small businesses to serve customers who cannot afford standard pre-packaged sizes, thereby increasing their customer base and sales. For instance, the cooking oil dispensers led to a sales uplift of 50% to 100% for participating retailers.

The business model generates value for multiple stakeholders. For micro-retailers, it increases sales, reduces stockouts, and enhances their ability to compete with larger stores by guaranteeing product authenticity and hygiene. The tech-enabled platform provides real-time inventory data to distributors, which triggers an automated restocking process and improves supply chain reliability. Furthermore, by eliminating the need for individual packaging, manufacturers can pass on cost savings to retailers, which can increase their profit margins, particularly on small-quantity sales where packaging can constitute 30% to 40% of the product cost. This approach also significantly reduces single-use plastic waste. The company, led by CEO Zahid Mitha, secured a $1 million grant from the Strive Community Innovation Fund in 2022 to further develop its washing powder dispenser.

Keywords: IoT technology, FMCG supply chain, single-use plastic reduction, micro-retail, Kenya, smart dispensers, sustainable retail, supply chain automation, emerging markets, retail technology, inventory management, last-mile distribution, circular economy, cleantech, venture-backed, social impact, B2B solutions, dispensing technology, Africa tech, financial inclusion